DETROIT – Chrysler could be headed for liquidation, the Wall Street Journal warns. It says the U.S. Treasury Department believes Chrysler’s weak product line and lack of international presence means it’s not worth saving. On top of that, Chrysler’s secured lenders – the ones who would get paid first if the company goes out of business and starts selling assets – say they’d get more money if Chrysler goes into liquidation versus what the government is offering them.
Meanwhile, via a posting on its website, the United Auto Workers union is urging its members to write to President Obama and tell him to support them. As is typical of the UAW, it is not offering any public comment on this posting to explain what it wants from the president. But union workers interviewed on local television news say they helped Obama get elected and now it’s his turn to help save their jobs.
Toyota expects its output in Japan to fall to its lowest level in 31 years. According to the AP, Toyota projects its output to be 2.8 million units this fiscal year, which is below the number needed to maintain its full-time workforce. The company has not laid off full-time employees since 1950 and said it would not do so at the moment. Toyota will cut working hours instead to help trim production.
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